Attractive stocks have exceptional fundamentals. In the case of Boral Limited (ASX:BLD), there’s is a financially-robust company with an impressive track record of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Boral here.
Excellent balance sheet, good value and pays a dividend
In the previous year, BLD has ramped up its bottom line by 63%, with its latest earnings level surpassing its average level over the last five years. Not only did BLD outperformed its past performance, its growth also exceeded the Basic Materials industry expansion, which generated a 13% earnings growth. This paints a buoyant picture for the company. BLD’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that BLD manages its cash and cost levels well, which is a key determinant of the company’s health. BLD appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
BLD’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, BLD’s share price is trading below the group’s average. This supports the theory that BLD is potentially underpriced.
For Boral, I’ve compiled three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BLD’s future growth? Take a look at our free research report of analyst consensus for BLD’s outlook.
- Dividend Income vs Capital Gains: Does BLD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from BLD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BLD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.